The Internal Revenue Service (IRS) issued a warning on May 27, 2016 about a new tax scam in which callers impersonating IRS employees, tax preparers, or even state revenue agents are demanding payment for a so-called "Federal Student Tax" (which does not exist). In these bogus phone calls, victims are threatened that they will be reported to the police if they do not wire money immediately to the scammer. The IRS encourages taxpayers to remain vigilant against these scams. To learn more about this and other common attempts at tax scamming, click here.
Filing tax returns can be stressful, which is one reason many taxpayers hire a trusted professional to handle their returns for them. But what happens if your tax preparer turns out to be less trustworthy than you thought?
The Internal Revenue Service has been cracking down on refund fraud and identity theft through the Security Summit initiative and its Criminal Investigation (CI) work. In fiscal year 2015, CI initiated 776 identity theft investigations, which led to 774 sentencings. Individuals found guilty of this type of crime face significant jail time. The average sentence in FY 2015 was 38 months, while the longest sentence was for more than 27 years.
This year's tax season is seeing unprecedented numbers of tax scams and new tactics scammers use to steal your identity. A new consumer alert issued March 14, 2016 by the Internal Revenue Service characterizes recent telephone scams as "aggressive and threatening." What's more, scammers are showing agility in their response to public awareness campaigns.
Tax season is here, and so are criminals ready to scam you out of your money or refunds. The IRS says, "Remember - if it sounds too good to be true, it probably is."
After seeing phishing and malware incidents quadruple this tax season, the IRS issued a renewed warning to consumers to be wary of suspicious e-mails. They are designed to look like official e-mails from tax agencies, tax preparers, or tax preparation software companies and may ask for personal information related to refunds, filing status, transcripts, and personal identification numbers. Scammers then use the information to file false claims or steal the taxpayer's identity. These scams are also being sent via text messages.
Being accused of violating state or federal tax laws is a very stressful situation to be in. Not only are the consequences severe if you are found guilty, the state and federal tax systems are both extremely complex. This video explains what action a person should take immediately after being charged with tax crimes or being investigated for violating state or federal tax law.
Each year, the Internal Revenue Service ("IRS") compiles an annual list of the common scams taxpayers may come across. Such scams tend to peak during filing season as taxpayers are preparing their own returns or hiring someone to prepare it for them. This year, in order to raise consumer awareness, the IRS is releasing one Dirty Dozen scam per day. Here are the first six scams about which the IRS is warning taxpayers:
Today the IRS issued the annual "Dirty Dozen" list of tax scams for 2014, in which the IRS compiles a variety of common scams that taxpayers can encounter. See IR-2014-16. The release notes that while taxpayers can encounter these scams at any point during the year, many of them peak during filing season. Here is the list:
The Department of Justice and Internal Revenue Service-Criminal Investigation announce a guilty plea by Aaron Cohen of Encino, California. Mr. Cohen pleaded guilty in the U.S. District Court for the Central District of California to conspiracy to defraud the United States.